The New Zealand dollar continued in consolidation mode yesterday, reflecting a tight trading range across the Tasman.
At 5pm the kiwi was buying US48.46c against its US48.32c close on Wednesday. But dealers thought it could trade higher against tonight as momentum traders climbed aboad, picking a range of US48.30-70c.
The Australian dollar was similarly marooned, stuck at US55.36c, close to Wednesday's close of US55.32c.
Offshore, the greenback slumped against the yen after Japan's prime minister said economic reforms were on track, prompting investors to buy back yen they sold off a day earlier.
Junichiro Koizumi threw his weight behind his financial services minister, a day after the minister abruptly delayed the release of a report on writing off mountains of non-performing bank loans in the face of heavy resistance from members of the ruling Liberal Democratic Party (LDP).
In Wellington, the greenback was buying 124.08 yen compared with 125.05 yen on Wednesday while the euro was trading at US97.65c against its US97.69c close here Wednesday.
On the local crosses the kiwi was buying A87.54c (A87.39c at yesterday's close), 0.4964 euro (0.4947), 60.13 yen (60.43), flat at 0.3129 pence, and 0.7285 Swiss francs (0.7265).
The Australian dollar was down at $1.1423 ($1.1444).
The 90-day bill yield was at 5.91 per cent (5.89), the New Zealand dollar trade-weighted index at 55.80 (55.74), and the monetary conditions index at minus 225 (minus 231).
The April 2004 bonds eased at 5.75 per cent (5.78), as did the November 2006s at 6.15 per cent (6.19), and the November 2011s at 6.46 per cent (6.50).
- NZPA
<i>Currency:</i> Kiwi consolidates in sympathy with Aussie
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